Australians aged 55-years and older are emerging as the most influential and powerful ‘super consumers’ in the country, with a once-in-a-generation discretionary spend ability, research from GfK in collaboration with Nine has revealed today.
As the highest interest rates in 30 years and inflationary pressures take bite, the rise of a more financially established generation aged 55-64 is seeing them spending more than their younger counterparts across everything from dining out, travel to technology and auto compared to last year.
The results of the study, undertaken earlier this year, were revealed today at the final session of Nine’s Big Ideas Store. A panel featuring 3AW Breakfast host and advertising guru Russel Howcroft, Chris Colter from Initiative, GfK’s Mitesh Khatri, director of content partnerships from Powered Lisa Day and Nine’s head of total audio sales Ash Earnshaw, discussed the findings of this highly influential, financially resilient and engaged cohort that are flipping the marketing norms on its head.
Howcroft said a big dynamic in what is going on in the 55-64 demographic is the fact that a lot of the kids have left home, and they are inheriting "a truckload of money.
“I’m going to speculate and say that if you’re between 55 and 64, you probably had a child when you were 25, so if you’re 60 now, that child is 35 and well and truly left home," said Howcroft.
"But let’s also imagine that the parent of that 60 year old is entering their twilight years and about to pass on insane wealth to that 60 year old.”
With retirement age now the oldest it has been since the early 1970s, households headed by 55-64s have recorded the highest real income growth, according to the Australian Bureau of Statistics. While the heavily targeted 45-54s record the highest household consumption, the 55-64s spend and consumption is increasing at the fastest rate, the research discovered.
Two of the key categories this older cohort are outspending are in education - investing in themselves with training or new courses, or supporting family members with university and school fees - and technology.
Earnshaw said it’s clear that the super consumer is a rich and increasingly diverse audience.
"This consumer base is as powerful as ever and the research shows us that they are more relevant in these economic times," said Earnshaw.
“They have deep pockets, different attitudes and they are spending freely. At the same time, the younger audiences, prized by advertisers are in retreat, spending less. It’s the older 55-plus audience emerging as the most influential and powerful consumer set in Australia.”
The research found that brand loyalty and making sustainable choices were strong amongst these super consumers, with two in five 45-64s revealing they are involved in the purchase of products for family and friends, while one third said they actively talk about experiences they’ve had with brands. They are, in essence, the original influencers.
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